Major protocol updates play a big role in the price of cryptocurrency projects as community members and investors get excited about the new features, and traders rush to “buy the excitement and sell the news”.
A log where the price has soared to new highs this week despite bearish conditions affecting the entire market Kusama (KSM), an experimental blockchain platform and a sister chain of the platform Speckle. Kusama is designed to provide developers with an interoperable and scalable framework.
Data from Cointelegraph Markets Pro Y. TradingView show that after falling to a minimum of USD 378 10th of May, The Kusama price rose 55% to a new all-time high of $ 591.55 thanks a Record trading volume of USD 1.568 billion in 24 hours.
The three reasons for KSM’s recent price hike include: the upcoming launch of parachain auctions (sidechains), recent integrations that have helped improve Kusama’s interoperability with other networks, and improved ways to set or lock KSM tokens for performance.
The launch of the parachutes is getting closer
The most significant event for Kusama occurred on May 12th cWhen the project announced that the latest proposal for improvement has been approved by the Council and is now a public referendum.
Short message: The v0.9.1 update has been approved by the Council and is now a public referendum that will end on Friday (12pm CEST). This update contains the code for parachutes, auctions and group loans, reduces the set minimum transfer by 100 times and the fees / deposits by 50 times.
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to???? kusama (@kusamanetwork) May 12, 2021
Short message: The v0.9.1 update has been approved by the Council and is now a public referendum, the end of which is accelerated on Friday (12 p.m. CEST). This update contains the code for parachutes, auctions and group loans, reduces the set minimum transfer by 100 times and the fees / deposits by 50 times.
This offered token holders a three day window between May 12th and 14th. to vote for the various parachutes, group loans and auctions you would like to see on the Kusama network.
Since KSM tokens are required to participate in the vote, demand for the token increased immediately after the announcement. and continues to rise on May 14th despite the general crash in the cryptocurrency market.
Cointelegraph Markets Pro’s VORTECS ™ data showed an optimistic outlook for KSM on May 11, ahead of the recent price hike and prior to the approval of the v0.9.1 update.
The VORTECS ™ score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points such as market sentiment, trading volume, recent price movements and activity on Twitter.
As seen in the graphic above, VORTECS fluctuated in and out of the green zone for the past week before rising to a high of 70 on May 11th. Around the same time that KSM’s price began its journey to a new all-time high for the next 32 hours.
The interoperability integration creates a spark
A second source of KSM’s price growth over the past month was the April 23rd announcement that Chainlink will grant ChainSafe Systems a grant to expand support for Kusama to Chainlink Oracle Pallet.
We are happy to award a scholarship to @ChainSafeth for the expansion, improvement and ongoing support of the #Chainlink Oracle Pallet that allows developers to easily create hybrid smart contracts @Speckle @ kusamanetwork Parachutes as well @substrate_io Chains. https://t.co/wdXO6SwRKP
to???? Chainlink – Official Channel (@chainlink) April 23, 2021
We are pleased to grant Chain Safeth a grant to expand, improve, and continue to support the Oracle #Chainlink suite, which allows developers to easily create hybrid smart contracts for Polkadot and Kusama parachutes, as well as substrate-based strings.
As you can read in the Tuir The expanded support enables developers to create hybrid smart contracts for DOT and KSM parachutes along with other substrate chains. Significant improvement in interoperability capacity.
Since one of the originally stated goals of the Polkadot network is improved interoperability across all blockchain networks, this was able to assure community members that important steps have been taken towards this goal by integrating the original platform. The most trusted and widely used assets in the crypto ecosystem.
New ways to stake out and generate income
Another reason for the demand for KSM are the attractive performance options for token holders who want to block their KSM tokens in the network or on new parachutes.
Staking out reward data shows this The average rate of performance of the KSM stakeout and delegation on the network is 13.72%, while the execution of a validation node is 14.72%.
As part of the parachute auction process Projects like Karura have opted for a collective loan, where community members connect their KSM tokens to this protocol for the duration of the parachute lease in exchange for the parachutist’s native token.
The collective loans and parachute auctions in @KusamaNetwork They will start any moment!
We work out an overview of @ KaruraNetwork, the Kusama DeFi Hub and the approach we are taking with the community to win the first Parachain slot in Kusama. https://t.co/r1zrW5KOK9
to???? Acala – DeFi Hub by Polkadot (@AcalaNetwork) May 13, 2021
The group rental and parachute auctions in Kusama start anytime!
We’ve put together an overview of Karura, the Kusama DeFi hub, and the approach we’re taking with the community to win the first Parachain slot in Kusama.
The collective loan allows the project to meet the requirements for obtaining a parachute lease for a period of time and all KSM tokens will be returned to taxpayers after the lease is in place.
In return for blocking their tokens for a longer period of time, community members will be rewarded with the native token of the parachute in question. But they lose the ability to earn rewards for using KSM.
The Collective Loan Model is an innovative new fundraising design for cryptocurrency projects that has delighted community members eager to get their favorite Kusuma-based tokens while retaining ownership of your KSM.
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